American Baptist Churches of Pennsylvania and Delaware

Required Minimum Distribution [RMD]


Use Your Required Minimum Disribution (RMD)
to Support ABCOPAD

By H. Scott Cunningham, Chairman & CEO, Security Trust Company of Lancaster, PA
Scott is a member of the ABCOPAD Foundation Board


If you are age 72 or older, the IRS rules require that you take a Required Minimum Distribiution (RMD) each year from your tax-deferred retirement account (such as your IRA, 401-k, 403-b, and 457-b).

Even though you aren't required to take your RMD, you might choose to take advantage of another IRS rule that allows you to direct your RMD to charity, and avoid paying ordinary income tax on that RMD withdrawal.

A Qualified Charitable Distribution (QCD) is a direct transfer of funds from your IRA, made payable directly to a qualified charity. An amount distributed as a QCD can be counted towards satisfying your RMD for the year (up to an amount of $100,000). The QCD is excluded from your federally taxable income. In comparison, if you took the RMD yourself, and then made a cash contribution to the charity, the RMD amount is reportable as federally taxable income. The difference is that the QCD is a direct transfer to the charity.

If you would like to take advantage of a QCD, here are the rules:

  • You must be at least 70½ years of age when you request the QCD.
  • The QCD must come out of your IRA by the RMD deadline, which is usually December 31.
  • Funds must be transferred directly from your IRA custodian to the qualified charity. If the custodian is issuing the check, the check must be payable to the charity. You may have the check sent to the charity, or you may deliver the check yourself.

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You are not 72 ???
You can still give a gift to support the many ministries of ABCOPAD !

Checks payable to: ABCOPAD Foundation
                      Send to: ABCOPAD Foundation, 407 Madison Ave, Hatboro, PA 19040